The Zhitong Finance App learned that Goldman Sachs released a research report saying that it raised the target price of Yao Ming Kangde (02359) H shares while also raising the target price for A-shares to RMB 213, maintaining the “buy” rating. Based on management's statement in the third quarter of 2026, the bank is more confident about the company's 2027 performance, so it raised the adjusted net profit forecast for the 2026-2028 fiscal year by 1%-4%, and raised the target price accordingly.

The company's strong CDMO orders and early-stage business recovery enhanced the visibility of its 2027 results. Management emphasized that new orders increased by about 60% year-on-year in the first nine months of 2026, and the strong performance was mainly due to the acceleration of phase III clinical and commercialization small molecule projects and the full recovery of the early drug discovery business. The latter is strongly supported by a recovery in financing in the biotech sector and emerging opportunities for AI drug discovery.

To meet this potential demand, the company plans to accelerate capacity expansion in 2027. Management anticipates that despite the increase in production capacity, the company's profit margin will remain steady, benefiting from increased operational efficiency, scale effects, and high-quality projects that are about to be completed.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.